OEM entrusts other manufacturers of similar products to produce specific processing tasks through contract ordering. After that, the ordered products will be bought out at a low price and directly labeled with their own brand trademarks.
This cooperative way of entrusting others to produce is called OEM for short. The manufacturer who undertakes the processing task is called OEM, and the products it produces are called OEM products. It can be seen that fixed-point production belongs to the "OEM" mode in processing trade and is the export of labor services with commodities as the carrier in international trade.
ODM refers to the original design manufacturer. ODM means that after a manufacturer designs a product, it may be seen by other enterprises in some cases, requiring the latter's brand name for production, or slightly modifying the design for production. Among them, the manufacturers who undertake the design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.
Extended data:
Supply mode of ODM supplier design scheme:
1. buyout method: the brand buys out the design of a product that has been made by ODM manufacturers, or the brand separately requests ODM manufacturers to design a product scheme for themselves.
2. No buyout method: the brand does not buy out the design of a certain model product of ODM manufacturer, and ODM manufacturer can sell the design of the same model product to other brands at the same time without buyout. When two or more brands share the same design, the product difference between the two brands mainly lies in the appearance.
"Brand Building" OBM(OriginalBrandManufacturer): Develop your own corporate image and get the greatest economic benefits.
In industrial society, OEM and ODM are commonplace. Well-known brand enterprises are generally willing to find other manufacturers or ODM for the sake of manufacturing cost, convenient transportation and saving development time. Well-known brand enterprises have to bear a lot of responsibilities when looking for other enterprises to carry out OEM or ODM. After all, the product is crowned by its own brand. If the product quality is not good, customers may complain at home or go to court.
Therefore, brand enterprises will definitely carry out strict quality control during the entrusted processing period. But after OEM, the quality can't be guaranteed. Therefore, when some merchants tell you that the manufacturer of a product is an OEM or ODM manufacturer of a big brand, don't believe that its quality is equivalent to that brand. The only thing you can believe is that this manufacturer has a certain production capacity.
References:
Baidu encyclopedia -OEM
Baidu encyclopedia -ODM